Update: I have removed /etc/resolv.conf and run dpkg-reconfigure resolvconf and answered yes to all of the options. The result was that now /etc/resolv.conf is correctly created as a symlink, but still not able to update it as I want to

TiTex my interface is set to static with an added dns-nameservers line as man resolvconf states. dhcp is not enabled. I want to make this work the proper way as I do a lot of update && distro upgrades and it keeps breaking up if everything is not done properly.

Pititis I tried what you suggested. Unfortunately nothing is added in /etc/resolv.conf. It's stuck at nameservers 127.0.0.1

... and on some Zoneminder installs when moving the hard drive to a new physical CPU I have had problems get the "new" network cards to work properly and find that if I delete the /etc/udev/rules.d/70-persistent-net.rules and then power down (not restart) the system the two cars are then detected as eth0 and eth1. I know that this is not the specific thing you face but that file seems to have some hold-over on the interfaces configutation.

Thanks for your suggestion. Unfortunately neither the comma between IPs in /etc/network/interfaces work neither the post with the modification of NetworkManager.
as I am running the server edition of Ubuntu and not LTS so network manager is not installed

I think this is caused by the way resolvconf treats local nameservers. Checking the man page, I noticed this:

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"[...] TRUNCATE_NAMESERVER_LIST_AFTER_LOOPBACK_ADDRESS
If set to "yes" then the libc script will include no more nameserver addresses after the first nameserver address that is a loopback address. (In IPv4 a loopback address is any one that starts with "127.". In IPv6 the loopback address is "::1".)

The advantage of truncating the nameserver list after a loopback address is that doing so inhibits unnecessary changes to resolv.conf and thus reduces the number of instances in which the update-libc.d/ scripts have to be run. When an interface is brought up or down the local caching nameserver that listens on the loopback address is still informed of the change and adapts accordingly; the clients of the resolver which use the local caching nameserver do not need to be notified of the change. A disadvantage of this mode of operation is that applications have no secondary or tertiary nameserver address to fall back on should the local caching nameserver crash. Insofar as a local nameserver crash can be regarded as an unlikely event, this is a relatively minor disadvantage. Set to "no" to disable truncation. The default is "yes".

A deprecated synonym for this variable is TRUNCATE_NAMESERVER_LIST_AFTER_127."